PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q3 2021 financial statements show increased net sales and income, rising assets and liabilities, but decreased operating cash flow due to working capital [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2021 and nine-month period income statements show increased net sales and net income attributable to Hubbell compared to the prior year | (in millions, except per share amounts) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | **$1,213.6** | **$1,108.6** | **$3,483.8** | **$3,148.1** | | Gross profit | $330.3 | $329.6 | $950.9 | $923.6 | | Operating income | $155.3 | $162.9 | $425.6 | $413.2 | | **Net income attributable to Hubbell** | **$108.5** | **$107.1** | **$282.0** | **$270.3** | | Diluted Earnings per share | $1.98 | $1.96 | $5.14 | $4.95 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets as of September 30, 2021, indicate an increase in total assets and liabilities compared to December 31, 2020, driven by receivables and inventories | (in millions) | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | **$1,833.2** | **$1,587.6** | | Total Assets | $5,241.7 | $5,085.1 | | **Total Current Liabilities** | **$1,035.4** | **$948.2** | | Total Liabilities | $3,063.6 | $2,999.7 | | Total Equity | $2,178.1 | $2,085.4 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month cash flow statements show a significant decrease in operating cash flow due to increased working capital, while investing and financing activities used cash | (in millions) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$306.8** | **$455.6** | | Net cash used in investing activities | ($53.5) | ($46.4) | | Net cash used by financing activities | ($252.4) | ($316.1) | | Increase (decrease) in cash | ($1.7) | $87.2 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies and significant events, including segment restructuring, business divestitures, debt refinancing, and a subsequent agreement to sell a lighting business - Effective January 1, 2021, the company consolidated its Electrical segment into Hubbell Electrical Solutions and moved its Gas Connectors and Accessories business to Utility Solutions[15](index=15&type=chunk)[16](index=16&type=chunk) - In June 2021, the company sold its Consumer Analytics Solutions business for **$9.8 million**, recognizing a pre-tax loss of **$6.9 million**[36](index=36&type=chunk) - The company incurred pre-tax restructuring costs of **$1.4 million** in Q3 2021 and **$3.5 million** for the first nine months, primarily for facility consolidations and workforce reductions[71](index=71&type=chunk)[72](index=72&type=chunk) - In March 2021, the company issued **$300 million** of 2.300% Senior Notes due 2031 and redeemed 3.625% Senior Notes due 2022, resulting in a **$16.8 million** loss on debt extinguishment[76](index=76&type=chunk) - On October 26, 2021, Hubbell agreed to sell its Commercial and Industrial Lighting business to GE Current for **$350 million** in cash[100](index=100&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2021 performance, highlighting increased net sales, but declining operating margins due to cost inflation and decreased operating cash flow from working capital investments [Results of Operations – Q3 2021 vs Q3 2020](index=30&type=section&id=Results%20of%20Operations%20%E2%80%93%20Q3%202021%20vs%20Q3%202020) Q3 2021 results show a 9.5% increase in net sales, but gross profit margin declined by 250 basis points due to material cost inflation, leading to a contracted operating margin | (in millions) | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net sales | $1,213.6 | $1,108.6 | | Gross profit | $330.3 | $329.6 | | Operating income | $155.3 | $162.9 | | Net income attributable to Hubbell | $108.5 | $107.1 | - Organic net sales grew **5.4%** in Q3 2021, driven by favorable price realization, while acquisitions (net of dispositions) added **3.5%** to growth[127](index=127&type=chunk) - Gross profit margin declined by **250 basis points**, primarily due to material cost inflation, higher freight, and logistics costs not fully offset by pricing and productivity initiatives[128](index=128&type=chunk)[129](index=129&type=chunk) [Results of Operations – Nine Months 2021 vs 2020](index=36&type=section&id=Results%20of%20Operations%20%E2%80%93%20Nine%20Months%202021%20vs%202020) Nine-month results show a 10.7% increase in net sales, but gross profit margin decreased by 200 basis points due to cost pressures, despite an increase in operating income | (in millions) | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | | Net sales | $3,483.8 | $3,148.1 | | Gross profit | $950.9 | $923.6 | | Operating income | $425.6 | $413.2 | | Net income attributable to Hubbell | $282.0 | $270.3 | - Organic net sales for the nine-month period grew **6.8%**, driven by favorable pricing and higher volume[144](index=144&type=chunk)[145](index=145&type=chunk) - Adjusted earnings per diluted share increased by **8.6%** to **$6.31** for the nine months ended September 30, 2021, compared to **$5.81** in the prior year period[151](index=151&type=chunk) [Segment Results](index=33&type=section&id=Segment%20Results) Q3 2021 segment results show Electrical Solutions sales growth with a slight margin decline, while Utility Solutions experienced sales growth but a significant operating margin decrease due to cost inflation and supply chain Electrical Solutions Segment Performance (Q3) | (in millions) | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net sales | $611.9 | $551.0 | | Operating income | $72.0 | $65.9 | | Adjusted operating margin | 12.4% | 12.7% | Utility Solutions Segment Performance (Q3) | (in millions) | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net sales | $601.7 | $557.6 | | Operating income | $83.3 | $97.0 | | Adjusted operating margin | 16.3% | 20.0% | - The Utility Solutions segment's adjusted operating margin decline in Q3 was driven by material costs exceeding price realization, higher freight costs, and lower volumes, with acquisitions contributing **90 basis points** to the decline[141](index=141&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=40&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Operating cash flow decreased due to working capital investments, but the company maintains strong liquidity with available cash and an undrawn revolving credit facility, with a stable debt to capital ratio - Net cash from operating activities decreased to **$306.8 million** for the nine months ended Sep 30, 2021, from **$455.6 million** in the prior year, mainly due to investments in working capital[158](index=158&type=chunk) - The company entered into a new five-year, **$750 million** committed revolving credit facility in March 2021, which was undrawn as of September 30, 2021[168](index=168&type=chunk) | (In millions) | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Debt | $1,563.8 | $1,590.0 | | Total Capital | $3,732.6 | $3,660.0 | | **Total Debt to Total Capital** | **42%** | **43%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no significant changes in the company's exposure to market risks during the nine months ended September 30, 2021 - There have been no significant changes in the Company's exposure to market risks during the nine months ended September 30, 2021[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2021, the Company's disclosure controls and procedures were effective at the reasonable assurance level[191](index=191&type=chunk) - There were no changes in internal control over financial reporting during the most recent quarter that have materially affected, or are reasonably likely to materially affect, these controls[192](index=192&type=chunk) PART II OTHER INFORMATION [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor has been identified concerning potential U.S. government mandates for COVID-19 vaccination or testing, which could adversely impact business operations and financial results - A new risk factor has been added concerning potential U.S. government mandates for COVID-19 vaccination or testing for employees of large companies and federal contractors[195](index=195&type=chunk)[196](index=196&type=chunk) - The company notes that these requirements may lead to increased attrition, challenges in securing labor, and additional costs, which could materially affect business operations and financial results[196](index=196&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any equity securities during Q3 2021, with **$288.8 million** remaining under the October 2020 stock repurchase program authorization - There were no share repurchases during the quarter ended September 30, 2021[199](index=199&type=chunk) - The remaining authorization under the October 2020 stock repurchase program is **$288.8 million**[198](index=198&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files

Hubbell Incorporated (NYSE:HUBB) Q3 2021 Earnings Conference Call October 26, 2021 10:00 AM ET Company Participants Dan Innamorato - Senior Director, IR Gerben Bakker - Chairman, President and CEO Bill Sperry - EVP and CFO Conference Call Participants Jeff Sprague - Vertical Research Steve Tusa - JPMorgan Josh Pokrzywinski - Morgan Stanley Christopher Glynn - Oppenheimer Tommy Moll - Stephens Nigel Coe - Wolfe Research Chris Snyder - UBS Operator Good day and thank you for standing by. Welcome to the Hubbel ...

Commission File Number 1-2958 HUBBELL INCORPORATED Back to Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ (Exact name of registrant as specified in its charter) Connecticut 06-03 ...

Hubbell Incorporated (NYSE:HUBB) Q2 2021 Earnings Conference Call July 27, 2021 10:00 AM ET Company Participants Dan Innamorato - Senior Director of Investor Relations Gerben Bakker - Chairman, President & Chief Executive Officer Bill Sperry - Executive Vice President & Chief Financial Officer Conference Call Participants Jeff Sprague - Vertical Research Tommy Moll - Stephens Christopher Glynn - Oppenheimer Josh Pokrzywinski - Morgan Stanley Chris Snyder - UBS Justin Bergner - G.Research Operator Good day a ...

Second Quarter 2021 Earnings Call July 27, 2021 Forward Looking Statements and Non-GAAP Measures Forward Looking Statements Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about expectations regarding our financial results, condition and outlook, anticipated end markets, near-term volume, continued opportunity for operational improvement, our ability to drive consistent and diff ...

PART I FINANCIAL INFORMATION [Financial Statements (unaudited)](index=3&type=section&id=ITEM%201%20Financial%20Statements) Unaudited Q1 2021 financial statements reflect slightly decreased net sales, increased net income, rising total assets, and significant financing cash flow, following segment reorganization - Effective January 1, 2021, the Company consolidated its Electrical segment into Hubbell Electrical Solutions and moved its Hubbell Gas Connectors and Accessories business to the Utility Solutions segment, with all presented financial statements updated to reflect this change[15](index=15&type=chunk)[16](index=16&type=chunk) [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2021 net sales slightly decreased to $1,078.4 million, yet operating income remained stable and net income increased to $77.7 million, boosting diluted EPS and cash dividends Q1 2021 vs Q1 2020 Income Statement Highlights | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net sales | $1,078.4 million | $1,090.3 million | | Gross profit | $289.8 million | $313.5 million | | Operating income | $117.6 million | $118.8 million | | Net income attributable to Hubbell Inc. | $77.7 million | $75.0 million | | Diluted Earnings per share | $1.42 | $1.37 | | Cash dividends per common share | $0.98 | $0.91 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2021 significantly increased to $74.5 million, primarily due to a reduced negative impact from foreign currency translation adjustments Comprehensive Income Summary | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net income | $79.1 million | $75.7 million | | Other comprehensive (loss) income | ($4.6) million | ($22.4) million | | Total comprehensive income | $74.5 million | $53.3 million | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets increased to $5.29 billion driven by higher cash, while total liabilities grew to $3.19 billion due to increased short-term debt, with equity remaining stable Balance Sheet Highlights | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total Current Assets | $1,827.5 million | $1,587.6 million | | Total Assets | $5,292.9 million | $5,085.1 million | | Total Current Liabilities | $1,148.7 million | $948.2 million | | Total Liabilities | $3,194.9 million | $2,999.7 million | | Total Equity | $2,098.0 million | $2,085.4 million | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2021 net cash from operations decreased to $58.9 million due to working capital, while financing cash flow significantly increased to $132.4 million from new debt, resulting in a $174.2 million rise in cash Cash Flow Summary | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $58.9 million | $108.4 million | | Net cash used in investing activities | ($15.3) million | ($15.6) million | | Net cash provided by financing activities | $132.4 million | $35.7 million | | Increase in cash and cash equivalents | $174.2 million | $118.0 million | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment reorganizations, revenue recognition, Q1 2021 segment sales with Electrical Solutions declining and Utility Solutions growing, new $300 million senior notes, a $750 million credit facility, and ongoing restructuring costs Disaggregated Revenue by Segment (Q1 2021 vs Q1 2020) | Segment | 2021 Net Sales (millions) | 2020 Net Sales (millions) | | :--- | :--- | :--- | | **Electrical Solutions** | $546.2 | $563.7 | | Commercial and Industrial | $378.4 | $381.0 | | Heavy Industrial | $76.3 | $86.3 | | Residential and Retail | $91.5 | $96.4 | | **Utility Solutions** | $532.2 | $526.6 | | Utility T&D Components | $374.9 | $354.9 | | Utility Communications and Controls | $157.3 | $171.7 | | **TOTAL** | **$1,078.4** | **$1,090.3** | - As of March 31, 2021, the Company had approximately **$380 million** of unsatisfied performance obligations for long-term contracts, primarily within the Utility Solutions segment, expected to be recognized over the next three years[27](index=27&type=chunk) - On March 12, 2021, the Company issued **$300 million** of 2.300% Senior Notes due 2031, with proceeds used to redeem outstanding 3.625% Senior Notes due 2022, resulting in a **$16.8 million** loss on extinguishment in Q2 2021[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2021 net sales decreased 1.1% to $1.08 billion due to organic decline, gross margin contracted, but stable operating margin and adjusted diluted EPS growth were achieved through cost controls, alongside debt refinancing and decreased operating cash flow Consolidated Results Summary (Q1 2021 vs Q1 2020) | Metric | 2021 | % of Net sales | 2020 | % of Net sales | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1,078.4 M | | $1,090.3 M | | | Gross profit | $289.8 M | 26.9% | $313.5 M | 28.8% | | Operating income | $117.6 M | 10.9% | $118.8 M | 10.9% | | Net income attributable to Hubbell | $77.7 M | 7.2% | $75.0 M | 6.9% | | Diluted EPS | $1.42 | | $1.37 | | Reconciliation of GAAP to Adjusted EPS | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $1.42 | $1.37 | | Adjusted Diluted EPS (Non-GAAP) | $1.72 | $1.64 | - Organic net sales declined **4.2%** due to lower volume, partially offset by favorable price realization, which was offset by a **3.0%** increase from acquisitions[117](index=117&type=chunk)[118](index=118&type=chunk) [Segment Results](index=31&type=section&id=Segment%20Results) In Q1 2021, Electrical Solutions net sales declined 3.1% organically, while Utility Solutions net sales grew 1.1% driven by acquisitions, with both segments showing slight adjusted operating margin improvements Electrical Solutions Performance (Q1 2021) | Metric | Amount | Change vs Q1 2020 | | :--- | :--- | :--- | | Net Sales | $546.2 M | -3.1% | | Organic Net Sales | | -4.5% | | Adjusted Operating Margin | 10.5% | +30 bps | Utility Solutions Performance (Q1 2021) | Metric | Amount | Change vs Q1 2020 | | :--- | :--- | :--- | | Net Sales | $532.2 M | +1.1% | | Organic Net Sales | | -3.9% | | Adjusted Operating Margin | 15.5% | +10 bps | [Financial Condition, Liquidity and Capital Resources](index=33&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company's financial condition remains solid despite decreased operating cash flow, supported by new $300 million senior notes and a $750 million credit facility, alongside capital returns via dividends and share repurchases - Cash provided by operating activities decreased to **$58.9 million** for Q1 2021, compared to **$108.4 million** in Q1 2020, primarily due to changes in working capital components[132](index=132&type=chunk) - On March 12, 2021, the company entered into a new five-year, **$750 million** committed revolving credit facility, which was undrawn as of March 31, 2021[143](index=143&type=chunk) - In Q1 2021, the company repurchased **$10.0 million** of its common stock, leaving **$290.0 million** authorized under its current program[141](index=141&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes in market risk exposure, including foreign currency, material prices, and interest rates, occurred during Q1 2021, as referenced in the 2020 Annual Report on Form 10-K - There have been no significant changes in the Company's exposure to market risks during the three months ended March 31, 2021[164](index=164&type=chunk) [Controls and Procedures](index=39&type=section&id=ITEM%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2021[167](index=167&type=chunk) - There were no changes in the Company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[168](index=168&type=chunk) PART II OTHER INFORMATION [Risk Factors](index=40&type=section&id=ITEM%201A%20Risk%20Factors) The company reports that there have been no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 - There have been no material changes in the Company's risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=ITEM%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2021, the company repurchased 62,000 common shares for $10.0 million, with $290.0 million remaining authorized under its stock repurchase program Q1 2021 Share Repurchase Activity | Period | Total Shares Purchased (000s) | Average Price Paid per Share | Remaining Authorization (millions) | | :--- | :--- | :--- | :--- | | January 2021 | 0 | $ - | $300.0 | | February 2021 | 62 | $162.35 | $290.0 | | March 2021 | 0 | $ - | $290.0 | - The company repurchased shares for an aggregate purchase price of **$10.0 million** in the three months ended March 31, 2021[172](index=172&type=chunk) [Exhibits](index=42&type=section&id=ITEM%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including documents related to new debt and credit agreements, certifications by the CEO and CFO, and XBRL data files [Signatures](index=43&type=section&id=Signatures) The report is duly signed on April 28, 2021, by William R. Sperry, Executive Vice President and Chief Financial Officer, and Jonathan M. Del Nero, Vice President, Controller (Principal Accounting Officer)

Hubbell Incorporated (NYSE:HUBB) Q1 2021 Earnings Conference Call April 27, 2021 10:00 AM ET Company Participants Dan Innamorato – Senior Director-Investor Relations Gerben Bakker – President and Chief Executive Officer Bill Sperry – Executive Vice President and Chief Financial Officer Conference Call Participants Jeff Sprague – Vertical Research Steve Tusa – JPMorgan Tommy Moll – Stephens Josh Pokrzywinski – Morgan Stanley Chris Snyder – UBS Justin Bergner – G.Research Operator Good day and thank you for s ...

First Quarter 2021 Earnings Call April 27, 2021 Forward Looking Statements and Non-GAAP Measures Forward Looking Statements Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about expectations regarding our financial results, condition and outlook, anticipated end markets, near-term volume, continued opportunity for operational improvement, our ability to drive consistent and diff ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DOCUMENTS INCORPORATED BY REFERENCE Commission File Number 1-2958 HUBBELL INCORPORATED (Exact name of registrant as specified in its charter) Connecticut 06-0397030 (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - Organic sales declined by 7% in Q4 2020, with adjusted operating margins at 13.4%, down 60 basis points year-over-year [17][18][19] - Free cash flow generation reached $560 million, reflecting a 12% increase over 2019 levels [11][34] - Earnings per share decreased by 8%, influenced by favorable non-operating factors [22] Business Line Data and Key Metrics Changes - Electrical Solutions segment saw a 10% decline in sales, with significant impacts from harsh and hazardous areas and C&I lighting [24][25] - Utility Solutions segment experienced a 1% decline in overall sales to $479 million, with Power Systems business growing mid-single digits [29][30] - Aclara faced double-digit declines due to project delays, but is expected to maintain mid-single-digit growth in 2021 [30][50] Market Data and Key Metrics Changes - The utility T&D components market is expected to grow by 2% to 4%, driven by grid modernization and renewable energy integration [48] - Industrial markets are anticipated to return to growth, contributing 3% to 5%, while residential markets are expected to remain strong [51] - Non-residential markets are projected to face continued softness, with a balanced exposure between new construction and renovation [52] Company Strategy and Development Direction - The company is focused on operational transformation and footprint optimization to achieve sustainable savings and future benefits [13] - Investments in acquisitions and capital deployment are aimed at enhancing shareholder value, with three acquisitions totaling $236 million closed in Q4 2020 [36][39] - The company is strategically aligned around electrification and grid modernization, positioning itself to address critical infrastructure challenges [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2021 while maintaining operating discipline and managing costs [16][54] - The company anticipates a balanced growth trajectory, with a total sales growth forecast of 6% to 8% for 2021 [54] - Management highlighted the importance of monitoring commodity prices and adjusting pricing strategies accordingly [120][121] Other Important Information - The company has set multi-year goals to reduce water consumption and greenhouse gas emissions by 10% [46] - A new sustainability website has been launched to provide details on ESG initiatives and expanded disclosures [47] Q&A Session Summary Question: Understanding the underlying incrementals in the bridge - Management confirmed that the underlying incrementals are expected to be in the 30% to 40% range, exclusive of restructuring benefits [67] Question: Price cost impact and commodity inflation coverage - Management indicated that price increases may not fully cover anticipated commodity inflation, necessitating ongoing adjustments [68][69] Question: Aclara's guidance and expected recovery - Management acknowledged that Aclara's performance may remain negative in Q1 but expects a rebound by Q2 [70] Question: Acquisition multiples and growth expectations - The company spent 10.5x trailing EBITDA on recent acquisitions, with expectations of mid to high single-digit growth for these investments [77][78] Question: Non-residential market progression - Management noted that new construction is expected to decline in high single digits, while MRO could see mid-single-digit growth [94] Question: Clarification on tariff credits and clean comps - Management clarified that 2020 is not a clean comp due to tariff refunds and exclusions affecting the net tariff rate [101]